Take DXD Profits

Plus: Hold DUG Calls

By Bryan Bottarelli
Tuesday, November 11, 2008 9:47 AM EST
Tue, 11 Nov 2008 14:47:00 GMT

PLAY: Sell your DXD November 76 Calls (DZS KX) at or above $7.30, good for the day.

Dear Bottarelli Research Member,

Good morning. We’re opening the day with a 170-point drop on the Dow, and this is exactly the move we were positioned for using our DXD November 76 Calls (DZS KX). As you know, we added to these ultra-short calls yesterday morning, which lowered our total cost basis down to $5.40. As I write, these calls have traded as high as $7.40, good for a 37% gainer. Let’s go ahead and lock in these profits now!

PLAY: Sell your DXD November 76 Calls (DZS KX) at or above $7.30, good for the day.

At the same time, we’ve also managed our DUG November 41 Straddle perfectly. After selling off the DUG November 41 Puts (DUG WO) yesterday for $7.00, this left us holding the DUG November 41 Calls (DUG KO) with a break-even price $2.60. With the DUG popping up $2.50 this morning, it won’t be long until this straddle position hands us a nice return. Maintain your DUG calls for more upside.

At the same time, continue to hold your GDX January 23 Calls (GBJ AW) and your RATE December 30 Puts (QIB XF). And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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